Shares of US regional bank Western Alliance Bancorporation surged following 1Q earnings that highlighted stabilizing deposits.
The firm saw a $2 billion increase in deposits in April, calming fears about a run on its accounts in the wake of March’s regional bank chaos.
Western Alliance shares are down nearly 35% year-to-date, echoing the decline of its peer group after the collapse of Silicon Valley Bank and Signature Bank.
"While we experienced elevated net deposit outflows immediately following the closure of other banks, deposit balances quickly stabilized," Western Alliance told shareholders in a statement accompanying its 1Q results.
Meanwhile, percentage of deposits insured by the FDIC was up to 73% by mid-April, making it less dependent on funding from less secure depositors.
Western Alliance also reported first-quarter earnings of $1.28 a share, below the analyst estimate of $1.95 a share.
Shares of Western Alliance were up around 17% in early Wednesday trading.
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